WISCONSIN LIFE INSURANCE EXAM
ACTUAL TEST BANK FULL SOLUTION WITH
TESTED QUESTIONS AND ANSWERS
●● Morbidity.
Answer: The rate people will get sick
●● Peril.
Answer: The cause of loss and the event insured against.
Ex: premature death, dependency during old age, accident, and sickness
●● Adverse Selection.
Answer: The tendency for poorer than average risks to seek out
insurance
●● Annuity.
Answer: Annuities protect against the risk of living longer than
expected. Annuities provide a guaranteed life income to protect against
the risk of depleting retirement funds
●● Lloyds Associations.
,Answer: Described as a market where individuals and groups gather to
exchange insurance, much like stock exchanges provide a place to buy,
sell and trade stocks
●● Risk Retention Groups.
Answer: Llimited liability companies or member-owned corporations
that collectively assume and spread their members' liability risks through
self-insurance. All members of a risk retention group must be employed
in similar types of businesses so that they have similar liability
exposures
●● Express Authority.
Answer: The explicit authority granted to the agent by the principal as
written in the agency contract
●● Implied Authority.
Answer: Not specifically expressed by the principal to the agent in the
agency contract, but is implicit in the agent's duties
●● Apparent Authority.
Answer: Is a situation in which the insurer gives the customer a
reasonable belief that an agent has the power and authority to bind the
principal, even in cases where the agent does not have such authority
●● Fair Credit Reporting Act (FCRA).
, Answer: The Act requires consumer-reporting agencies to implement
policies and procedures to preserve the confidentiality, accuracy,
relevance, and appropriate utilization of consumer's private credit
information
●● What cannot be in a consumer report unless for a life insurance
policy of $150,000 or more:.
Answer: -Bankruptcies dating back more than 10 years
-Civil suits and judgments dating back more than seven years or cases in
which the statute of limitations has expired, whichever period is longer
-Tax liens dating back more than seven years
-Adverse information dating back more than seven years
-Reports of a consumer's arrests, indictments or convictions
●● Guaranty Associations.
Answer: Provide a safety net for all member life, health and annuity
insurers in a particular state
●● Defamation.
Answer: Any false, maliciously critical, or derogatory communication -
written or oral - that injures another's reputation, fame, or character
●● Rebating.
ACTUAL TEST BANK FULL SOLUTION WITH
TESTED QUESTIONS AND ANSWERS
●● Morbidity.
Answer: The rate people will get sick
●● Peril.
Answer: The cause of loss and the event insured against.
Ex: premature death, dependency during old age, accident, and sickness
●● Adverse Selection.
Answer: The tendency for poorer than average risks to seek out
insurance
●● Annuity.
Answer: Annuities protect against the risk of living longer than
expected. Annuities provide a guaranteed life income to protect against
the risk of depleting retirement funds
●● Lloyds Associations.
,Answer: Described as a market where individuals and groups gather to
exchange insurance, much like stock exchanges provide a place to buy,
sell and trade stocks
●● Risk Retention Groups.
Answer: Llimited liability companies or member-owned corporations
that collectively assume and spread their members' liability risks through
self-insurance. All members of a risk retention group must be employed
in similar types of businesses so that they have similar liability
exposures
●● Express Authority.
Answer: The explicit authority granted to the agent by the principal as
written in the agency contract
●● Implied Authority.
Answer: Not specifically expressed by the principal to the agent in the
agency contract, but is implicit in the agent's duties
●● Apparent Authority.
Answer: Is a situation in which the insurer gives the customer a
reasonable belief that an agent has the power and authority to bind the
principal, even in cases where the agent does not have such authority
●● Fair Credit Reporting Act (FCRA).
, Answer: The Act requires consumer-reporting agencies to implement
policies and procedures to preserve the confidentiality, accuracy,
relevance, and appropriate utilization of consumer's private credit
information
●● What cannot be in a consumer report unless for a life insurance
policy of $150,000 or more:.
Answer: -Bankruptcies dating back more than 10 years
-Civil suits and judgments dating back more than seven years or cases in
which the statute of limitations has expired, whichever period is longer
-Tax liens dating back more than seven years
-Adverse information dating back more than seven years
-Reports of a consumer's arrests, indictments or convictions
●● Guaranty Associations.
Answer: Provide a safety net for all member life, health and annuity
insurers in a particular state
●● Defamation.
Answer: Any false, maliciously critical, or derogatory communication -
written or oral - that injures another's reputation, fame, or character
●● Rebating.
